The UK construction industry’s retail sector witnessed a downturn in May 2024. This decline was marked by a decrease in project starts and main contract awards, both compared to the previous quarter and year. Despite this, there was a notable increase in detailed planning approvals, providing a glimmer of optimism. The construction landscape is adapting to these changes, affecting stakeholders across the industry.
The retail sector of the UK construction industry saw a significant decrease in activity during May 2024, with project starts and principal contract awards falling behind their figures from the previous quarter and the same period last year. This trend indicates a challenging environment for growth and development initiatives within the sector.
Amidst this downturn, there was a positive shift worth noting. Detailed planning approvals witnessed growth, not only surpassing the previous quarter’s figures but also showing improvement compared to the same time a year ago. This upturn suggests an impending change in the construction landscape, potentially pointing towards future opportunities for growth as these approvals translate into actionable projects.
With the total value of retail projects commencing on site during the three months leading to May reaching £417 million, the reduction in project startups underscores a cautious approach from investors and developers. These figures illustrate the complexities faced by the sector, which is balancing between immediate setbacks and future potential as indicated by the rise in planning approvals.
The UK’s retail construction sector faces both challenges and opportunities, with declining project starts and growing planning approvals.
